Medical Device Makers to Offset Excise Tax by Price Increases
According to a recent industry survey conducted by global consultancy Emergo Group, many medical device manufacturers expect to increase product costs to offset the effects of a 2.3 percent excise tax which is scheduled to take effect in 2013.
Recently, the Internal Revenue Service issued proposed regulations which indicate that manufacturers of many types of durable medical equipment and supplies available through Part B of Medicare may be subject to the tax.
The survey involved 180 medical device industry CEOs, presidents and managing directors. Fifty-three percent of respondents said they would pass along to customers some or all of any increased costs associated with the tax. Thirty-seven percent of the respondents plan to lower productions costs without layoffs. The tax is part of the Affordable Care Act, and applies to domestically produced or imported medical devices. It excludes medical devices that the public generally buys at retail for individual use.
Sleep Apnea Common Among Stroke Sufferers
A new research has shown how common sleep apnea is among stroke sufferers. Particularly, the results reveal the frequency of sleep apnea in patients who suffer silent strokes; which in most cases, sufferers are not even aware they’ve had a stroke because the condition does not present the outward symptoms that are typically associated with stroke.
Researchers investigated the frequency and severity of obstructive sleep apnea as silent stroke risk factor. The results of the research, which evaluated 56 people over a period of 18 months, revealed high rates of sleep apnea among patients with silent stroke. However, the study did not confirm that sleep apnea is a factor causing stroke, or whether people who suffer strokes are then more likely to develop sleep apnea.
Other range of serious and chronic illnesses associated with obstructive sleep apnea includes cardiovascular problems, diabetes, and sexual dysfunction.
HME Business Need Retail Sales
The end of government entitlement programs is a cause for concern for HME businesses. In recent years, this has caused radical change in businesses. With this, they need to find alternative sources of revenue stream within the next year or two in order to survive.
Retail Benchmarks. Over the years, HMEs have adjusted their businesses to improve profit, but for them to succeed, they need to increase retail sales, open retail-only stores, set an average gross margin of 48 percent, and gain net profits average from 8 to 12 percent per $1 million gross sales.
Diversifying Revenue. Other revenue options are available for HME businesses besides Medicare and Medicaid. They are third party insurance companies, self-insured corporations, hospices, prisons, and VA medical centers.
Sell Multiple Products per Customer. In addition to reimbursement items, businesses can stock product options that generate higher sales-per-customer. They should demonstrate to patients all of the core and related products that will meet their home health care needs.
Making HME Affordable. Not everyone can afford paying HME out of their pockets. Businesses need to practice retail sales techniques that make HME affordable like acquiring low- cost products, offering lay-away programs and financing programs, and offering used HME products.
Other HME News of Interest
Your HR manager: A go-to resource
REMINDER: CMS Briefing on Competitive Bidding is Tomorrow; Ask your Legislators to Attend!
Related posts:
- Top HME Industry News 2-25-2012 America Needs a Better Approach to Healthcare America has superb...
- Top HME Industry News 3-6-2012 Committee Meets to Address Sleep Apnea and EOBR Driver...
- Top HME Industry News 3-1-2012 Senator Shares His Concerns about the Medicare Bidding Program...
- Top HME Industry News 2-24-2012 Philadelphia Town Hall Call Discusses Competitive Bidding Program With...
- Top HME Industry News 2-27-2012 APAP as an Alternative to CPAP for Uncomplicated Sleep...
